But wouldn't that make their town one giant target for the other guilds to siege and destroy? I'm still very hopeful that a nice balance will be found.
Well, it's a nice thought... but I wouldn't bet money on it. Or pay money on it, in this case. Even if I knew there was a decent balance, I wouldn't bet money on them actually staying. There are many games coming out, such as HJ, with many of those feature but minus the full loot pvp. So many of the "nice" players might not even stay. Whereas there are 0 full loot pvp games coming out (that I know of) so the griefers would (probably) be staying. That's just my opinion, though. Could be wrong... but again, I'm a cheap bastard. No way would I risk money on it.
Actually it's not clear whether the caves and whatnot will be instanced. I've heard it both ways. Though yes, no instances in the main world. But don't underestimate modern server technology. It's improving all the time and I really don't think (seeing as they have many examples to go off of) that a company would purposely ruin themselves when they could just par down the number of people to something reasonable.
Everything about the game will be non-instanced. There will be tunnels underground, which will work like a semi-instance. In that EVERYONE will be there, and they'll be part of the same server, they simply exist to help with travel time. Because the gameworld is supposedly huge.
I followed the game for a while... to include msg boards and all interviews/blogs/previews/etc. I still watch it, because they did say that while it was unlikely to make a non-full loot server, that it wasn't totally out of the realm of possiblity. DFO, on paper, is a very amazing looking game. But I have no faith in humanity. The things people derive joy from is, quite simply, baffling. To include griefers... and/or people who are "glad the --- cowboy is gone." Though I think that message was removed as quickly as it was posted.
So I just really find it hard to believe that there will be even the slightest chance of a "balanced" population. Nor do I think that they would stay long, if they did start.